Here's What to Expect From Interpublic's (IPG) Q3 Earnings
The Interpublic Group of Companies, Inc. IPG is scheduled to release its third-quarter 2023 results on Oct 20, before market open.
Interpublic has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matching on one instance. The average surprise is 13.2%.
Q3 Expectations
The consensus estimate for the top line is currently pegged at $2.4 billion, up 4.5% from than the year-ago actual figure. Growth in Healthcare Media Offerings and Public Relations and Experiential Offerings can be the probable reason for such revenue growth.
The Zacks Consensus Estimate for earnings per share is pegged at 75 cents, indicating 19.1% growth from the year-ago figure. A diversified revenue stream and growth in key business areas are expected to drive such bottom-line growth.
Interpublic Group of Companies, Inc. (The) Price and EPS Surprise
Interpublic Group of Companies, Inc. (The) price-eps-surprise | Interpublic Group of Companies, Inc. (The) Quote
Segmental Expectations
Our estimate for third-quarter 2023 revenues, before billable expenses from Media, Data & Engagement Solutions (MD&E), is currently pegged at $955 million, down 4% from the third-quarter 2022 reported figure.
Our estimate for Integrated Advertising & Creativity Led Solutions (IA&C) revenues is currently pegged at $1060.3 million, slightly above the year-ago reported figure. Our estimate for revenues from Specialized Communications & Experiential Solutions (SC&E) is currently pegged at $749.3 million, indicating a 28% increase from the year-ago reported figure.
Adjusted EBITA of MD&E, IA&C and SC&E segments are likely to witness an increase of 19.9%, 15% and 21% to $192.8 million, $180.9 million and $77.2 million, respectively. For Corporate and Other, adjusted EBITA is likely to decline 26% to negative $25.2 million.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for IPG this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
IPG has an Earnings ESP of -1.77% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks from the broader Business Services sector, which according to our model, have the right combination of elements to beat on earnings this season.
Verisk Analytics VRSK: The company’s revenues are expected to decline 11.2% from the year-ago figure and the bottom line is expected to indicate slight growth from the year-ago figure. VRSK has beaten the Zacks Consensus Estimate in three of the previous four quarters and matched on one instance, with an average surprise of 9.9%. The company currently holds a Zacks Rank of 2 and has an Earnings ESP of +10.52%.
S&P Global SPGI: The company’s revenues are expected to increase 5.7% from the year-ago figure and the bottom line is expected to indicate 4.1% growth from the year-ago figure. SPGI has beaten the Zacks Consensus Estimate in three of the previous four quarters and matched on one instance, with an average surprise of 3.9%. The company currently holds a Zacks Rank of 3 and has an Earnings ESP of +0.23%.
Republic Services RSG: The company’s revenues and bottom line are expected to indicate growth of 5.2% each from the year-ago figure. RSG has beaten the Zacks Consensus Estimate in all the previous four quarters with an average surprise of 9.3%. The company currently holds a Zacks Rank of 3 and has an Earnings ESP of +1.13%.
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Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report
Republic Services, Inc. (RSG) : Free Stock Analysis Report
Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report
S&P Global Inc. (SPGI) : Free Stock Analysis Report
